Mary Kay, Inc. sells facial skin care products around the globe. The business model is to provide one-on-one, highly personalized service. More than 500,000 independent beauty consultants (IBCs) sell in 43 markets worldwide. Each IBC runs his or her own business by developing a client base and the providing services and products for sale to those clients. The IBCs were offered support though an e-commerce system with two major components: mymk.com and Mary Kay InTouch. Mymk.com allows IBCs to create instant online sites where customers can shop anytime directly with their personal IBC. Mary Kay, Inc. InTouch stream lines the ordering process by automatically calculating discounts, detecting promotion eligibility, allowing the IBCs to access up-to-date product catalogues, and providing a faster way to transact business with the company.

How would the organizational strategy need to change to respond to Mary Kay’s new business strategy and information system?

What changes would you suggest Mary Kay, Inc managers make in their management systems in order to realize intended benefits of the new systems? Specifically, what types of changes would you expect to make in the evaluation systems, the reward systems, and feedback systems?